Your IBANYS Team: 
Working Together To Make 2017 A Great Year 
For New York C ommun ity Banks !
 
In This Issue

Quick Links


Have You Contributed to NYSIBPAC This Year?
If not...now is the time! We need your help in this statewide election year to support candidates and committees who understand community banks' needs.  Can we count on you?
CLICK HERE
for our 2017 PAC contribution form. Help support IBANYS' political action efforts in New York State.

Partner

April 26, 2017



IBANYS Heads To Washington:
For Key Meetings On "The Hill"
IBANYS will lead a delegation of New York community bankers to Washington, D.C. April 30-May 3 to participate in key meetings with the new York congressional delegation "on the hill" during the ICBA Capital Summit. The IBANYS group of nearly 20 will be led by President John Witkowski, Chairman Doug Manditch (Empire National Bank) and Vice Chairman Mike Briggs (USNY Bank), and Rep King past IBANYS Chairs Bob Fisher (Tioga State) and John Buhrmaster (1st National/Scotia). Regulatory and tax relief, mortgage reform and agricultural lending are at the forefront of the issues we will advocate for, many of which are included in the ICBA Plan for Prosperity. House Financial Services Chairman Hensarling (R-TX) just released his "Financial CHOICE" legislation. It incorporates many of PFP provisions as an alternative to Dodd Frank. IBANYS'  Tuesday, May 2 hill meetings will include  Senator Chuck Schumer  (Senate Democratic Leader) and members of the New York Congressional Delegation. They include House Financial Services Committee members Peter King, Claudia Tenney, Lee Zeldin and Carolyn Maloney; Ways & Means (tax) Committee member Tom Reed, Agricultural Committees member John Faso, and Education/Workforce Committee member Elise Stefanik, as well as a number of other Representatives.   



IBANYS' May 9-10 Regional Lending Conferences To Examine 
Challenges,  Opportunities
IBANYS 3rd Annual Lending Conference, co-sponsored with T.Gschwender & Associates, will be held May 9-10, 2017 in  Syracuse, N.Y. 
Attendees Can Earn up to 10 CPE Hours.
  • A major success in previous years, this conference brings together outstanding speakers to examine some of the biggest opportunities and challenges in mortgage, consumer, commercial & small business lending
  • A "must attend" meeting for all who are involved in the lending & credit process, including loan officers, mortgage officers, consumer & commercial lending officers, credit officers and CFOs and senior management.
New York community banks: register your loan and credit professionals today! IBANYS Associate Members & Preferred Providers: Become a sponsor.  Contact IBANYS' Linda Gregware: (518) 436-4646, lindag@ibanys.net or visit www.ibanys.net and click on the "Education" tab and go to Upcoming meetings.

Click here to register/review program  
Click here for sponsorship opportunities.


IBANYS CFO/Senior Management Conference: 
Strategic Insights, Key Updates
In 2017, community banks' CFOs, controllers, treasurers and cashiers face bigger challenges than ever before as banks'  financial strategies continue to  evolve.  Whether growing your loan  portfolio or finding new fee income, the challenge  to create acceptable ROA and ROE performance is as diffi cult as we have seen for nearly 20 years. IBANYS'  2017 CFO & Sr. Management Conference (June 7-9 at
West Point, N.Y.) will focus on a number of strategic insights and provide important updates necessary to help senior management lead and guide New York's community banks toward a profitable and successful future. 
Topics will include:
  • State and national economic trends
  • Tax and accounting principles 
  • Interest rate risk 
  • Capital planning 
  • CECL 
  • Other timely subjects identified by IBANYS' CFO Peer Group. 
Who Should attend? 
Community bank CEOs, COOs, CFOs, Presidents, EVPs, Senior Managers, controllers, ALCO teams, cashiers and directors.  NOTE:  Attendees can earn up to 10 CPE Credit Hours (1.0 in taxation).

CLICK HERE to register/review program, and 
HERE for sponsorship information.

And, Don't Forget These Upcoming Webinars & Seminars
board conference
 
BSG Webinar: 
"Maximizing Social Media 
For Community Financial Institutions"
Tuesday, May 2, 2017
Whether your institution has a minimal presence on social media, or a robust team of "Tweeters" 
-- there are opportunities for improvement. This free 60-minute webinar will explore new trends in social media marketing and teach you how to capitalize on them to improve your institution's overall performance.  Sara Harris (Administrative Director for Insight CRM Solutions) will review the most popular social media platforms and provide tips to help streamline your efforts and optimize your messaging. Hear a review of compliance concerns that should not be ignored. The program is geared to your marketing, social media and compliance officers & teams. Click here to register. Email BSG Marketing Manager Michele Rehm:  mrehm@bsgfinancial.com.

CSI's Semi-Annual Cybersecurity Update: "Protect Your Institution Against 
Ransomware Attacks" 
Tuesday, May 9, 2017
Ransomware is a leading cybersecurity threat facing your organization today. Neglecting to protect confidential data can cost you money, customers and reputation. Register for this free webinar to get up-to-date information and best practices from Tyler Leet, CSI's director of risk and compliance services. 
You'll Learn 3 Key Takeaways:
  • Data highlighting why ransomware is one of the largest cybersecurity threats to financial institutions
  • Tactics you can perform to stay proactive
  • Potential attacks facing financial institutions in 2017
To register: https://goo.gl/NtkSGv


Promontory Financial Free Webinar On "Cash Sweep" & CDARS
May 15, 2017
Promontory Interfinancial Network is offering a free webinar May 15 to demonstrate how banks can use its services, ICS and CDARS, to manage their balance sheets efficiently, attract valuable customers, free-up collateral and improve asset liquidity.  Do you have the tools necessary to manage your balance sheet efficiently, attract valuable customers, free up collateral, and improve asset liquidity-all while providing your customers the protection and service they expect?  Join Promontory Interfinancial Network-a trusted partner chosen by more than 3,000 financial institutions for this free webinar to learn how Cash Sweep(R) and CDARS (R) can help your bank with tools to meet new challenges.  Click here to register.


CSI Resources' Quarterly Compliance Update Webinar: 
May 18, 2017

1,689 pages. That's how enormous the Consumer Financial Protection Bureau's (CFPB) Prepaid Final Rule is. Join CSI Resources for their live Quarterly Compliance Webinar on Thursday, May 18. Keith Monson, CSI's Chief Risk Officer, will answer your questions to help you prepare.  In a nutshell, the rule adds significant compliance requirements to prepaid products pursuant to the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z). However, this rule could have lasting effects on all financial institutions, even those that do not offer prepaid products. Is your financial institution ready to play by the Rule?  Webinar topics include:
  • An executive breakdown of the CFPB's Prepaid Final Rule
     
  • Next steps to ensure your financial institution's compliance with the rule
     
  • The latest regulatory updates and changes from Washington
Click here to register.  Questions? Email CSI's  Pam Farnsworth: 
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GOVERNMENT RELATIONS

After a lengthy recess, both Congress and the New York State Legislature are back in session this week. . .
new york state capitol
ALBANY

Governor Adds Another Republican 
To His Inner Circle
Gov. Cuomo added another Republican to his senior staff inner circle, hiring Maria Comella as chief of staff, succeeding Melissa DeRosa, recently promoted to the top staff position of Secretary to the Governor.  Comella had served as deputy chief of staff for communications and strategic planning for New Jersey GOP Gov. Chris Christie, and has also done work for other Republicans, including President Bush, former NYC Mayor Giuliani and Sen. McCain. O ther experienced Republicans on Gov. Cuomo's team include Budget Director Robert Mujica and Deputy Chief of Staff Kelly Cummings -- both veterans of the Senate GOP conference staff. Meanwhile,Gov. Cuomo said he  increased the state budget by just 2% -- and called that the lowest increase in spending in state history. However, the Assembly's analysis showed total state spending grew 5.6% over the past year.  

Poll: Mixed Results On Governor, 
State Budget
In a new Siena Poll, voters gave a mixed overall assessment of the finalized 2017-18 state budget. Only only 22% viewed it as excellent or good, and 23% believe it is a "poor" budget. . .even as they supported some of the broad measures included in the plan. The poll found  Governor Cuomo's favorability and job approval ratings held flat from last month, despite the budget passing a week late: 51% would re-elect the Governor next year; 54 % view him favorably, and 37% do not. Demographically, 71% of Democrats support him, but 58% of Republicans and 52% of independents give him a negative rating. Overall, 47%  gave him a negative job performance rating. 

Senate Passes Term Limits Bill
The Republican State Senate yesterday passed legislation to require eight-year caps on leadership posts in the Assembly and Senate. It would apply to the temporary president of the Senate, speaker of the Assembly and minority leaders of both houses. The Assembly has been generally opposed to term limits legislation.


WASHINGTON, D.C.

House Hearing On "Financial CHOICE Act"
A battle between the banking and retail industries is shaping up over the Durbin amendment's limitations on debit card swipe fees contained in the 2010 Dodd-Frank Act.  The amendment would be repealed under draft legislation recently released by House Financial Services Chairman Jed Hensarling ("the Financial CHOICE Act"). The proposed change is strongly supported by the ICBA (and IBANYS) and ABA, and strongly opposed by the retail industry. The Financial Services Committee meets today for a hearing on the legislation. The updated draft makes some changes to overhauling the Consumer Financial Protection Bureau. It would scale back its authority, ensure the president can fire its director at will. (Last year's version would have replaced the sole director with a five-member, bipartisan commission.)  GOP members are likely to support Chairman Hensarling's positions. Retail groups are reportedly flying in members to lobby lawmakers against the Durbin repeal. ICBA (and IBANYS) will be on the hill May 2 urging repeal of the amendment and passage of the CHOICE Act provisions incorporated from ICBA's Plan for ProsperitySpeaker Ryan said today he'll seek a full House vote on the measure "as quickly as possible" after it's approved by Committee.

President Signs Industry Related Orders
President Trump  signed three executive actions impacting the financial services industry. They included presidential memos directing the Treasury Department to examine the Dodd-Frank process for winding down failing banks, and directing the agency to review the Financial Stability Oversight Council's authority to designate firms systemically important. The third item was an executive order directing the Treasury Department to analyze tax rules adopted in the last 18 months and identify any regulations deemed convoluted or onerous.

White House, Treasury Unveil Tax Reform Plan
Treasury Secretary Mnuchin and chief White House economic advisor Cohn today unveiled "core principles" of their initial tax reform plan. It  calls for a 15% corporate rate (top rate for pass-through businesses), down from the current 39.6%. Mnuchin and Cohn said the plan would be "the biggest tax cut in U.S. history." There has not been major tax reform enacted since 1986. Mnuchin added, "we want to move as fast as we can," and that   the White House wants a "combined plan" with the House and Senate and is in discussions on details. House Speaker Ryan saw previewed the plan and said the House is in "80% agreement," though the House GOP previously called for a corporate rate of 20%.  Ryan expects the process may stretch into the fall or winter. The plan would cut the number of income tax brackets from seven to three, with a top rate of 35% and lower rates of 25% and 10%. It is not clear what income ranges will fall under those brackets. It would also eliminate all tax deductions except for the mortgage and charitable contribution deductions, as well as the alternative minimum tax and estate tax. Mnuchin would not say if the plan would be "revenue neutral," but said it would "pay for itself" through economic growth. The plan is viewed by many as the White House's "opening bid" in the tax reform process. Senate Democratic Leader Schumer (D-NY) commented: ""We don't need a tax plan that allows the very rich to use pass-throughs to reduce their rates to 15% while average Americans are paying much more. That's not tax reform. That's just a tax giveaway to the very, very wealthy that will explode the deficit." 
Click here to read the White House memo on the tax plan shared by CNBC.


Why Is Regulatory Reform Important To Community Banks?
A recent article published by the Donald W. Reynolds National Center for Business Journalism notes the U.S. banking industry continues to see consolidation among a handful of large banks, continuing a trend since the financial crisis. Small banks face a more competitive market, and a number have closed or merged. A study by George Mason University reported the number of small banks with assets less than $10 billion has declined 27%, from 8,263 in the first quarter of 2000, to 5,961 in the fourth quarter of  2014. At the same time, large banks grew by 32%.  A major contributing factor is the cost and burden of regulation.  According to the  FDIC , 5,461 FDIC-insured community banks reported total earnings of $5.3 billion in the fourth quarter of 2016, up 10.5% from the previous year. At the same time, community bank-financed small-business loans grew to $298  billion, an increase of $579 million from the previous quarter.  Community banking's share of domestic deposits has declined from 40.4% in 2000 to 21.7% in 2014. In 14 years, they have lost nearly half their share of deposits to large banks.
Click here to read the full article. 

Consumer Confidence Fell In April
The Consumer Confidence Index dropped to 120.3 in April. Economists had expected it to fall only to 122.9 for the month, according to Thomson Reuters consensus estimates.  The index hit 125.6 in March, its highest since December 2000, and stood at 116.1 in February. A spokesperson noted:  "Consumer confidence ... still remains at strong levels. Consumers assessed current business conditions and, to a lesser extent, the labor market less favorably [in April] than in March.  Looking ahead, consumers were somewhat less optimistic about the short-term outlook for business conditions, employment and income prospects." 

Home Prices Climbing
U.S. home prices rose more than anticipated in February, according to new data from the S&P/Case-Shiller U.S. National Home Price Index. The index jumped 5.8% for the month. Analysts had expected it to climb by 5.7%, according to Thomson Reuters consensus estimates. This represents the most gains in 32 months. A spokesperson said  the low stock of existing homes for sale (about 3.8 months worth of supply at current sales rates) is bolstering the price increases across the board.  "Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates." 


Have You Contributed To NYSIBPAC?
This year brings a challenging legislative session, with new chairmen of both the State Senate and State Assembly Banks Committees. Many of our competitors within the financial services industry operate very well-funded political action committees, and we need your support to ensure community banks remain an important part of the political process and debate. We have placed an updated 2017 NYSIBPAC contribution form in the column along the left border of this newsletter.  Can we count on your support?

MEMBER SERVICES & BENEFITS

 
IBANYS identifies offers products and services  that provide value to your banks, companies, employees communities. These brief summaries provide links for information. Please contact IBANYS President John Witkowski with questions. 

Health & Wellness 
The health and wellness landscape continues to evolve. "My Wellness Resource" can be a nice addition to your existing benefit package.   C ontact Alan Justin at (716) 907-5500  or visit:  http://nbibanys.phecard.com.

. . .An IMPORTANT UPDATE: 
We are pleased to inform HR & Benefits Representatives of IBANYS member banks about a new offer available to their banks.  Offered through IBANYS' partner at My Wellness Resource is a unique program providing a $500 rebate on any new Fiat, Chrysler, Dodge, Jeep, Ram or Hyundai vehicle. Those firms comprise approximately 19% of all car and truck sales in the US market.  The rebate is independent of, and may be combined with, any other offer available to your employees, so it's a true cash rebate that is not available through dealerships. Employees negotiate their best deal at the dealership of their choice including other rebates, cash back offers, etc., then apply for and receive this $500 rebate after their new car purchase or lease. The program may only be  offered though individual banks, not through IBANYS itself. Therefore, if it's something you think your bank and employees might be interested in, drop a line to us and we will forward it to our contact at My Wellness, Alan Justin, who will reach out to you with  the details. 
We only ask that if you are not currently participating in the My Wellness Resource program, that you take a fair & objective look at the program!

Secure, Enhanced Internet Presence
The .bank program by fTLD operates trusted, verified, more secure and easily-identifiable locations on the Internet for financial companies and the customers they serve. Visit www.icba.org/SRPArticles<http://www.icba.org/SRPArticles> page 

Online Lending
Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending  partner . Visit 

Battle Against Prostate Cancer
Cure the Blue" raises funds and awareness regarding prostate cancer in New York State. Visit www.curetheblue.com to get involved!  
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IBANYS Webinars Are Designed 
For  New York Community Banks:
Is YOUR Bank Participating? 
New York's community banks face an array of challenges -- and, opportunities! Bank officers, board members and employees need to stay fully informed and up-to-date. . . on their responsibilities -- and, their potential liabilities. Community bankers need the proper information and tools to effectively do so, and to execute their business and strategic plan to prepare for the future.  Here's one important, convenient way to do this:  IBANYS' 2017 webinars. These presentations are designed to meet the needs of New York community banks. The programs are both effective and cost-effective. . . and participating couldn't be easier! Community bankers can do so from their own offices. The number of participants has dramatically increased over the past few years. Is your bank among those who have benefited?  If not, find out why so many of  your industry and association peers are taking advantage of these webinars. R eview upcoming programs link below:
https://financialedinc.com/a/ibanys/category/live

. . .The Federal Home Loan Bank of New York
The mission of the Federal Home Loan Bank of New York (FHLBNY) is to advance housing opportunity and local community development by supporting members in serving their markets.
The FHLBNY meets its mission by providing its members with access to economical wholesale credit and assistance through its credit products, mortgage finance program, housing and community lending programs, and correspondent services to increase the availability of home finance to families of all incomes.  The FHLBNY helps community lenders in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands advance housing and community growth. The FHLBNY is part of the congressionally chartered, nationwide Federal Home Loan Bank System, which was created in 1932 to provide a flexible credit liquidity source for member community lenders engaged in home mortgage and neighborhood lending. The FHLBNY increases the availability of mortgages and home finance to families of all income levels by offering high-value correspondent and cash management services to assist our members in more effectively serving their neighborhoods and meeting their Community Reinvestment Act responsibilities. For aditional information, c ontact Adam Goldstein, SVP/Head of Sales  & Business Development:  (212) 441-6700, adam.goldstein@fhlbny.com. Or, visit the website at  www.fhlbny.com.

 
. . .That 15 states  currently have term limits in place for legislators? Six other states have passed legislative term limits at one time or another, but they have either been repealed or declared unconstitutional.  In the United States, there are  1,972 state senate seats; 562 of them (28.5%) come with a limit.  There are  5,411 state house (Assembly) seats;  1,368 of them (25%) come with a limit. Of the total of 7,383 state legislative seats, 1,930 (26.1%) are limited.




 

 New York community banks play a key role in our state and local economies. Help spread the good news among your customers, business and elected leaders and media!

Click here for quotes from Governor Cuomo and DFS Superintendent Lawsky extolling the performance and value of New York community banks.

Click here for the full NYS Study on community banking.

Click here to read IBANYS President & CEO John Witkowski's comments on the new tax changes and benefits for New York community banks as approved in the 2014-15 State Budget.

 

Click here for IBANYS' letter to the Editor of Consumer Reports Magazine correcting failure to mention community banks as an alternative to using "big banks."

_________________________________

John J. Witkowski
President and Chief Executive Officer
 
Stephen W. Rice
Director of Government Relations and Communications

Linda Gregware
Director of Administration and Membership Services 

William Y. Crowell, III
Legislative Counsel